question_answer 1)
Sun and Star were partners in a firm sharing profits in the ratio of 2 : 1. Moon was admitted as a new partner in the firm. New profit sharing ratio was 3:3:2. Moon brought the following assets towards his share of goodwill and his
capital: (Rs.)
Machinery 2,00,000
Furniture 1,20,000
Stock 80,000
Cash 50,000
If his capital is considered as Rs. 3,80,000, the goodwill of the firm will be: (CBSE 2020)
A)
Rs. 70,000 done
clear
B)
Rs. 2,80,000 done
clear
C)
Rs. 4,50,000 done
clear
D)
Rs. 1,40,000 done
clear
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question_answer 2)
Mona and Tina were partners in a firm sharing profits in the ratio of 3 : 2. Naina was admitted with 1/6th share in the profits of the firm. At the time of admission. Workmen's Compensation Reserve appeared in the Balance Sheet of the firm at Rs. 32,000. The claim on account of workmen's compensation was determined at Rs. 40,000. Excess of claim over the reserve will be: (CBSE 2020)
A)
credited station account done
clear
B)
debited to revaluation account done
clear
C)
credited to old partner's capital account done
clear
D)
debited to old partner's capital account done
clear
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question_answer 3)
Goodwill existing in the books is written-off at the time of admission of a partner, it is transferred to partners' capital accounts in their:
A)
old profit sharing ratio done
clear
B)
new profit sharing ratio done
clear
C)
sacrificing ratio done
clear
D)
gaining ratio done
clear
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question_answer 4)
Unrecorded assets or liabilities are transferred to:
A)
partners' capital account done
clear
B)
partners' current account done
clear
C)
revaluation account done
clear
D)
profit and loss account done
clear
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question_answer 5)
A and B are partners in a firm having a capital of Rs. 54,000 and Rs. 36,000 respectively. The admitted C for 1/3rd share in the profit. C brought proportionate amount of capital. The capital brought in by C would be: (CBSE 2019)
A)
Rs. 90,000 done
clear
B)
Rs. 45,000 done
clear
C)
Rs. 5,400 done
clear
D)
Rs. 3,600 done
clear
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question_answer 6)
When the new partner brings cash for goodwill, the amount is credited to: (CBSE 2015)
A)
revaluation account done
clear
B)
cash account done
clear
C)
premium for goodwill account done
clear
D)
realisation account done
clear
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question_answer 7)
New partner can be admitted into partnership with the consent of:
A)
any one partner done
clear
B)
majority of partners done
clear
C)
all the partners done
clear
D)
2/3rd of old partners done
clear
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question_answer 8)
Sacrificing ratio is used to distribute ..................... in case of admission of a partner.
A)
reserves done
clear
B)
goodwill done
clear
C)
revaluation profit done
clear
D)
balance in profit and loss account done
clear
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question_answer 9)
X and Y are partners in a firm with capital of Rs. 1,80,000 and Rs. 2,00,000. Z was admitted for 1/3rd share in profits and brings Rs. 3,40,000 as capital, calculate the amount of goodwill.
A)
Rs. 2,40,000 done
clear
B)
Rs. 1,00,000 done
clear
C)
Rs. 1,50,000 done
clear
D)
Rs. 3,00,000 done
clear
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question_answer 10)
A and B are partners sharing profits and Losses in the ratio of 5 : 3. On admission, C brings Rs. 70,000 as cash and Rs. 43,000 against goodwill. New profit ratio between A, B and C is 7:5:4. The sacrificing ratio of A and B is:
A)
3:1 done
clear
B)
1:3 done
clear
C)
4: 5 done
clear
D)
5:9 done
clear
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question_answer 11)
A newly admitted partner acquires the right to:
A)
share in the future profits done
clear
B)
share in the assets of the firm done
clear
C)
Both [a] and [b] done
clear
D)
None of the above done
clear
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question_answer 12)
Revaluation account or profit and loss adjustment account is a/an:
A)
Real Account done
clear
B)
Personal Account done
clear
C)
Nominal Account done
clear
D)
Asset Account done
clear
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question_answer 13)
If, at the time of admission, some profit and loss account balance appears in the books, it will be transferred to:
A)
Profit & Loss Adjustment Account done
clear
B)
All Partners' Capital Accounts done
clear
C)
Old Partners' Capita! Accounts done
clear
D)
Debited to Goodwill Account done
clear
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question_answer 14)
A, B and C are partners sharing profits in ratio of 3 : 2 :1. They agree to admit D into the firm. A, B and C agreed to give 1/3rd, 1/6th and 1/9th share of their profit. The share of profit of D will be:
A)
\[\frac{1}{10}\] done
clear
B)
\[\frac{11}{54}\] done
clear
C)
\[\frac{12}{54}\] done
clear
D)
\[\frac{13}{54}\] done
clear
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question_answer 15)
According to Section 31(1) of the Indian Partnership Act, 1932, "A person can be admitted as a new partner only with the.......... unless otherwise agreed upon."
A)
consent of one partner done
clear
B)
consent of the existing partners done
clear
C)
Both a and b done
clear
D)
consent of the firm done
clear
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question_answer 16)
If the incoming partner brings the amount of goodwill in cash and also a balance exists in goodwill account, then this goodwill account is written-off among the old partners in:
A)
the new profit shark g ratio done
clear
B)
the old profit sharing ratio done
clear
C)
the sacrificing ratio done
clear
D)
the gaining ratio done
clear
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question_answer 17)
X and Y are partners sharing profits in the ratio of 3 : 2. Z is admitted as a partner. Calculate sacrificing ratio if new profit sharing ratio is 9 : 7 :4.
A)
3 : 1 done
clear
B)
3 : 2 done
clear
C)
1 : 3 done
clear
D)
9 : 7 done
clear
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question_answer 18)
Profit or loss on revaluation of assets and reassessment of liabilities is transferred to partners' capital accounts in their:
A)
Capital Ratio done
clear
B)
Equal Ratio done
clear
C)
Old Profit Sharing Ratio done
clear
D)
Gaining Ratio done
clear
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question_answer 19)
In case of admission of a partner, the entry for unrecorded investments will be:
A)
B)
C)
D)
None of the above done
clear
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question_answer 20)
'X' and 'Y' are partners in a firm which develops software for industries. X's minor son 'Z' is a computer wizard. Can he be admitted in the partnership firm?
A)
Yes, if X agrees done
clear
B)
Yes, if Y agrees done
clear
C)
Yes, if X and Y both agree done
clear
D)
No, he cannot be admitted done
clear
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question_answer 21)
X and Y are partners sharing profits in the ratio of 3 : 2, and capitals as Rs. 1,00,000 and Rs. 50,000 respectively. Z is admitted for l/5th share in profits. The amount of Z will contribute as capital will be:
A)
Rs. 50,000 done
clear
B)
Rs. 35,000 done
clear
C)
Rs. 37,500 done
clear
D)
Rs. 60,000 done
clear
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question_answer 22)
When the balance sheet is prepared after the new partnership agreement, the assets and liabilities are recorded at:
A)
Historical cost done
clear
B)
Current cost done
clear
C)
Realisable value done
clear
D)
Revalued figures done
clear
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question_answer 23)
The formula for calculating the sacrificing ratio is:
A)
New Share - Old Share done
clear
B)
Old Share - New Share done
clear
C)
Gaining Ratio - Old Ratio done
clear
D)
Old Ratio - Gaining Ratio done
clear
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question_answer 24)
If, at the time of admission, the revaluation account shows a profit, it should be credited to:
A)
old partners capital accounts in the old profit sharing ratio done
clear
B)
all partners capital accounts in the new profit sharing ratio done
clear
C)
old partners capital accounts in the new profit sharing ratio done
clear
D)
old partners capital accounts in the sacrificing ratio done
clear
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question_answer 25)
When share of new or incoming partner is given without : giving the details of sacrifice made by old or existing partners, then:
(i) it is assumed that old partners make sacrifice in their old profit sharing ratio.
(ii) there is no change in profit sharing ratio of the old partners.
A)
Only (i) is correct done
clear
B)
Only (ii) is correct done
clear
C)
Both (i) and (ii) are correct done
clear
D)
Both (i) and (ii) are incorrect done
clear
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question_answer 26)
In case of fixed capitals, undistributed profits, general reserves, etc., are transferred to
A)
Partners' Capital Accounts done
clear
B)
Partners' Current Accounts done
clear
C)
Revaluation Account done
clear
D)
Profit and Loss Adjustment Account done
clear
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question_answer 27)
When a new partner brings goodwill in cash, it is credited to:
A)
His Capital A/c done
clear
B)
Sacrificing Partner's Capital A/cs done
clear
C)
Old Partner's Capital A/cs done
clear
D)
All Partner's Capital A/cs done
clear
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question_answer 28)
X and Y are partners sharing profits and losses in the ratio of 3 : 2. Z was admitted for the l/5th share and for this he brings Rs. 1,50,000, as capital. If capitals are to be proportionate to profit sharing ratio, the respective capitals of the partners will be
A)
Rs. 3,00,000 : Rs. 3,00,000 : Rs. 1,50,000 done
clear
B)
Rs. 3,60,000 : Rs. 2,40,000 : Rs. 1,50,000 done
clear
C)
Rs. 1,50,000 : Rs. 1,50,000 : Rs. 1,50,000 done
clear
D)
Rs. 1,50,000 : Rs. 2,00,000 : Rs. 4,00,000 done
clear
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question_answer 29)
When a new partner brings his share of goodwill in cash, the amount is debited to:
A)
Goodwill A/c done
clear
B)
Capital A/c of the new partner done
clear
C)
Cash A/c done
clear
D)
Capital A/cs of the old partners done
clear
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question_answer 30)
According to ............... if the new partner is not able to bring his share of goodwill in cash, then goodwill should be adjusted through the capital accounts of the partners.
A)
AS 10 done
clear
B)
AS 26 done
clear
C)
AS 2 done
clear
D)
AS 5 done
clear
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question_answer 31)
If at the time of admission, there is some unrecorded liability, it will be:
A)
debited to revaluation account done
clear
B)
credited to revaluation account done
clear
C)
debited to goodwill account done
clear
D)
credited to partners' capital accounts done
clear
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question_answer 32)
A and B are sharing profits and losses in the ratio of 3 : 2. They admit C as a partner and give him 2/ 10th share in the profits. The new profit sharing ratio will be:
A)
12 : 8 : 5 done
clear
B)
3 : 2 : 2 done
clear
C)
3 : 2 : 5 done
clear
D)
2 : 1 : 2 done
clear
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question_answer 33)
On the admission of a new partner:
A)
old firm is dissolved done
clear
B)
old partnership is dissolved done
clear
C)
Both old partnership and firm are dissolved done
clear
D)
Neither partnership nor firm is dissolved done
clear
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question_answer 34)
When a new partner does not bring his share of goodwill in cash, the amount is debited to:
A)
Cash A/c done
clear
B)
Premium A/c done
clear
C)
Current A/c of the new partner done
clear
D)
Capital A/c of the old partners done
clear
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question_answer 35)
X and Y are partners sharing profits in the ratio of 3 : 1. They admit Z as a partner who pays Rs. 4,000 as goodwill, the new profit sharing ratio being 2 : 1 : 1 among X, Y and Z. The amount of goodwill will be credited to:
A)
X and Y as Rs. 3,000 and Rs. 1,000 done
clear
B)
Rs. 2,000 each done
clear
C)
only Y done
clear
D)
only X done
clear
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question_answer 36)
If the new partner brings his share of goodwill in cash, it will be shared by old partners in:
A)
ratio of sacrifice done
clear
B)
old profit sharing ratio done
clear
C)
new profit sharing ratio done
clear
D)
capital ratio done
clear
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question_answer 37)
At the time of admission, if the profit Sharing ratio among the old partners does not change, then sacrificing ratio will be:
A)
equal done
clear
B)
according to the contribution of capital done
clear
C)
their old profit sharing ratio done
clear
D)
according to new partner done
clear
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question_answer 38)
In the absence of an express agreement as to who will contribute to new partners' share of profit, it is implied that the old partners will contribute:
A)
equally done
clear
B)
in the ratio of their capitals done
clear
C)
in their old profit sharing ratio done
clear
D)
in the gaining ratio done
clear
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question_answer 39)
A and B are partners sharing profits in the ratio of 2 : 3 Their balance sheet shows machinery at Rs. 2,00,000; stock at Rs. 80,000 and debtors at Rs. 1,60,000. C is admitted and new profit sharing ratio is agreed at 6 :9 : 5. Machinery is revalued at Rs. 1,40,000 and a provision is made for doubtful debts @5%.A's share in loss on revaluation amount to Rs. 20,000. Revalued value of stock will be:
A)
Rs. 62,000 done
clear
B)
Rs. 1,00,000 done
clear
C)
Rs. 60,000 done
clear
D)
Rs. 98,000 done
clear
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question_answer 40)
Contingency reserve appearing in the balance sheet at the time of admission of a partner is ............ to old partners' capital accounts in old ratio.
A)
debited done
clear
B)
credited done
clear
C)
Either [a] or [b] done
clear
D)
None of these done
clear
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question_answer 41)
Goodwill brought by the incoming partner is distributed among the old partners in their:
A)
Old profit sharing ratio done
clear
B)
New profit sharing ratio done
clear
C)
Sacrificing ratio done
clear
D)
Gaining ratio done
clear
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question_answer 42)
A and B are partners sharing profits in the ratio of 2 : 3, they admit C as a partner for l/4th share, the sacrificing ratio of A and B will be:
A)
2 : 3 done
clear
B)
1 : 1 done
clear
C)
3 : 2 done
clear
D)
2 : 1 done
clear
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question_answer 43)
X is admitted into the partnership for l/4th share. Total capital of the old firm is Rs. 36,000. If capital are to be proportionate to the profit sharing ratio, the amount that X has to bring will be:
A)
Rs. 15,000 done
clear
B)
Rs. 12,000 done
clear
C)
Rs. 11,250 done
clear
D)
Rs. 24,000 done
clear
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question_answer 44)
When goodwill existing in the books is written-off at the time of admission of a partner, it is transferred to partners' capital accounts in their:
A)
Old profit sharing ratio done
clear
B)
New profit sharing ratio done
clear
C)
Sacrificing ratio done
clear
D)
Gaining ratio done
clear
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question_answer 45)
Workmen Compensation Reserve (WCR) appears in the balance sheet of Rashmi and Suman. who share profits in the ratio of 2 : 3 at Rs. 80,000. Deepa is admitted and the new profit sharing ratio is 1:1:1. If the claim on account of WCR is estimated at Rs. 1,00,000, then
A)
the difference of Rs. 20,000 will be debited to revaluation account done
clear
B)
the difference of Rs. 20,000 will be debited to Rashmi's capital account done
clear
C)
the difference of Rs. 20,000 will be debited to Suman's capital account done
clear
D)
None of the above done
clear
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question_answer 46)
A and B are partners in a business sharing profits and losses in the ratio of 7 : 3 respectively. They admit C as a new partner. A sacrificed 1/7th share of his profit and B sacrificed 1/3rd of his share in favour of C The new profit sharing ratio of A, B and C will be:
A)
3 : 1 : 1 done
clear
B)
2 : 1 : 1 done
clear
C)
2 : 2 : 1 done
clear
D)
None of these done
clear
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question_answer 47)
When a new partner is admitted, the balance of 'General Reserve' appearing in the balance sheet at the time of admission is credited to:
A)
Profit and Loss Appropriation Account done
clear
B)
Capital Accounts of all the Partners done
clear
C)
Capital Accounts of Old Partners done
clear
D)
Revaluation Account done
clear
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question_answer 48)
In case revaluation account is prepared, the assets & liabilities appear in the books of reconstituted firm at their:
A)
old book values done
clear
B)
market value done
clear
C)
revalued figures done
clear
D)
realisable value done
clear
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question_answer 49)
A and B are sharing profits and losses in the ratio of 5 : 3. They admit C as a partner and give him 3/10th share of the profits. This share he will get l/5th from A and 1/ l0th from B The new profit sharing ratio will be:
A)
5 : 6 : 3 done
clear
B)
2 : 4 : 6 done
clear
C)
17 : 11 : 12 done
clear
D)
18 : 24 : 38 done
clear
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question_answer 50)
Can employee provident fund be distributed among old partners in old ratio at the time of admission?
A)
It can be distributed done
clear
B)
It can't be distributed done
clear
C)
Can be distributed if tax is paid done
clear
D)
None of the above done
clear
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question_answer 51)
If X pays Rs. 1,50,000 as his share of goodwill to Y (Privately), an existing partner, the treatment will be:
A)
goodwill account will be debited by Rs. 1,50,000 done
clear
B)
goodwill account will be debited by Rs. 6,00,000 done
clear
C)
goodwill account will be credited by Rs. 1,50,000 done
clear
D)
no entry will be passed done
clear
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question_answer 52)
In case revaluation account is not prepared, the assets and liabilities appear in the books of reconstituted firm at their:
A)
old book values done
clear
B)
market value done
clear
C)
revalued figures done
clear
D)
realisable value done
clear
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question_answer 53)
Unless agreed otherwise, it is presumed that:
A)
the new partner acquires his share in profit from all the old partners in their old profit sharing ratio. done
clear
B)
the new partner acquires his share in profit from all the old partners equally. done
clear
C)
the old partners continue to share the remaining profit equally. done
clear
D)
None of the above done
clear
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question_answer 54)
A and B are partners sharing profits and losses in the ratio of 7 : 5. They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He acquires this share as 1/24th from A and 1/8th from B The new profit sharing ratio will be:
A)
13 : 7 : 4 done
clear
B)
7 : 13 : 4 done
clear
C)
7 : 5 : 6 done
clear
D)
5 : 7 : 6 done
clear
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question_answer 55)
If the market value of investments is Rs. 1,47,000, then the share of Kirn, Mansi and Poorvi in the Investment Fluctuation Fund (IFF) will be:
A)
Rs. 5,250; Rs. 3,150; Rs. 2,100 done
clear
B)
Rs. 6,750; Rs. 4,050; Rs. 2,700 done
clear
C)
Rs. 5,000; Rs. 5,000; Rs. 3,500 done
clear
D)
None of these done
clear
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question_answer 56)
Increase in the value of liabilities at the time of admission of a partner is:
A)
debited to revaluation account done
clear
B)
credited to revaluation account done
clear
C)
credited to partner's capital account done
clear
D)
debited to partner's capital account done
clear
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question_answer 57)
A person may be admitted as a new partner:
A)
in accordance with a contract between the existing partners or with the consent of all the existing partners, done
clear
B)
in accordance with a contract between the existing partners or with the consent of all the existing partners subject to the provisions of Section 30 of the Act. done
clear
C)
after obtaining specific approval of the Registrar of Firms & Societies, to this effect. done
clear
D)
by simply taking the consent of the new partner. done
clear
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question_answer 58)
Revaluation account is debited:
A)
an increase in provision for doubtful debts done
clear
B)
an increase in value of land & building done
clear
C)
a decrease in amount of creditors done
clear
D)
to transfer loss on revaluation done
clear
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question_answer 59)
A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. C is admitted for l/5th share in the profits of the firm. If C gets it wholly from A, the new profit sharing ratio after C's admission will be:
A)
1: 3 : 3 done
clear
B)
3 : 1 : 1 done
clear
C)
2 : 2 : 1 done
clear
D)
1 : 3 : 1 done
clear
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question_answer 60)
Partner's capital account is debited:
A)
to record the profit on revaluation done
clear
B)
to record the general reserve done
clear
C)
to record the P and L account (Dr.) done
clear
D)
to record the shortage of capital brought in done
clear
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question_answer 61)
A and B are partners sharing profits and losses as 2 : 1. C is admitted and profit sharing ratio becomes 4 : 3 : 2. Goodwill is valued at Rs. 94,500. C brings required goodwill in cash. Goodwill amount will be credited to:
A)
A Rs. 14,000 and B Rs. 7,000 done
clear
B)
A Rs. 12,000 and B Rs. 9,000 done
clear
C)
A Rs. 21,000 done
clear
D)
A Rs. 94,500 done
clear
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question_answer 62)
A and B are partners sharing profits and losses in the ratio of 3 : 2. C is admitted into partnership for l/5th share in profit He pays Rs. 1,00,000 as goodwill. The ratio of the partners A, B and C in the new firm would be 3 : 1 :1. Goodwill will be credited to:
A)
only A Rs. 1,00,000 done
clear
B)
only B Rs. 1,00,000 done
clear
C)
A Rs. 60,000; B Rs. 40.000 done
clear
D)
A Rs. 75,000; B Rs. 25,000 done
clear
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question_answer 63)
Accumulated profits/losses & reserves are shared by the old partners in their:
A)
Capital Ratio done
clear
B)
New Profit Sharing Ratio done
clear
C)
Sacrificing Ratio done
clear
D)
Old Profit Sharing Ratio done
clear
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question_answer 64)
B and N are partners in a firm sharing profits in the ratio of 3 : 2.They admit S as a partner for 1/4th share in the profits. S acquires his share from B and N in the ratio of 2 : 1. The new profit sharing ratio will be:
A)
2 : 1 : 4 done
clear
B)
19 : 26 : 15 done
clear
C)
3 : 2 : 4 done
clear
D)
26 : 19 : 15 done
clear
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question_answer 65)
Which of the following is true?
A)
An incoming partner acquires his Share from all the old partners in their profit sharing ratio. done
clear
B)
An incoming partner acquires his share from all the old partners in some agreed ratio. done
clear
C)
An incoming partner acquires his share from one or more of the old partners in some agreed ratio. done
clear
D)
None of the above done
clear
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question_answer 66)
Balance sheet prepared after the new partnership agreement, assets and liabilities are recorded at:
A)
Original value done
clear
B)
revalued figure done
clear
C)
realisable value done
clear
D)
current cost done
clear
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question_answer 67)
A, B and C are partners sharing in the ratio of 5 : 4 : 3. They admit D for - \[\frac{1}{7}\]th share. It is agreed that B would retain his original share. Sacrificing ratio will be:
A)
A, B and C - 5 : 4 : 3 done
clear
B)
A and C - 4 : 3 done
clear
C)
A and C - 5 : 4 done
clear
D)
A and C - 5 : 3 done
clear
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question_answer 68)
An incoming partner is Liable for all the acts of the firm done:
A)
before his admission done
clear
B)
after his admission done
clear
C)
Both [a] and [b] done
clear
D)
None of these done
clear
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question_answer 69)
Unless agreed otherwise, it is presumed that:
A)
sacrificing ratio is the same as old profit sharing ratio. done
clear
B)
new profit sharing ratio of old partners is the same as old profit sharing ratio. done
clear
C)
new profit sharing ratio of old partners is equal. done
clear
D)
Both [a] and [b] done
clear
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question_answer 70)
A and B are partners sharing profit or loss in the ratio of 3 : 2. C is admitted into partnership as a new partner. A sacrifices l/3rd of his share. B sacrifices l/4th of his share in favour of C What will be the C's share in the firm?
A)
\[\frac{1}{5}\] done
clear
B)
\[\frac{2}{10}\] done
clear
C)
\[\frac{3}{10}\] done
clear
D)
None of these done
clear
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